Recently we have talked to half a dozen forex brokerage firm`s CEOs. They have three points of view in common:
- All their biggest clients stay flat during the event.
- As many banks declare not to trade and the results take place during Asian session the spread may increase enormously.
- If the volume coming from institution is low it may be easier to shake the market by making a rapid move: up or down.
From our perspective, you can expect up to 1000 pips up movement on GBP/USD or 15% drop if Britain decide to live the EU.
Remember, holding cash is also a position.
Risk Warning: Transactions in Contracts for Difference and Foreign Currency are leveraged products that can result in losses that exceed your initial deposit. These products may not be suitable for everyone. Please seek advice if you do not fully understand the risks.